Newland public hearing on proposed 6% room occupancy tax highlights collection and Airbnb concerns

A public hearing before the Town of Newland Board of Aldermen on Feb. 4 centered on a proposed 6% room occupancy tax and the creation of a Town of Newland Tourism Development Authority (TDA).

A staff member read the resolution aloud, citing North Carolina session laws 2001-439 and 2002-94 and stating the town "levies a room occupancy tax of 6% of the gross receipts derived from the rental of an accommodation within the town of Newland" and that the tax would be "effective at 12AM on April 1, 2025," per the resolution text. The staff member also said the proceeds would be collected and administered under those session laws and managed by a TDA established by the board.

The hearing drew multiple local business owners and residents who raised implementation questions. A lodging operator summarized the practical problem: "it's gonna be a nightmare," saying reservations already on the books and prepaid bookings through platforms such as Expedia and Booking.com would make retroactive collection difficult. The operator asked whether the town would delay implementation for existing reservations or provide a process to reconcile preexisting, prepaid bookings.

Staff answered that businesses are responsible for reporting gross receipts for rooms rented 90 days or less and for adjusting accounts if a guest's stay extends past 90 days (the resolution treats stays longer than 90 consecutive days to the same occupant as long-term and not subject to the levy). The staff member said the town would retain an administrative fee and that the TDA would handle the remaining funds, and that the town finance officer would serve as an ex-officio treasurer for the authority. The staff member also said the TDA's accounts would be audited like other town finances.

Commenters pressed whether online travel companies would remit occupancy taxes directly. Staff said the town would collect from local businesses and that, in practice, the business must remit the occupancy tax to the town; staff did not commit to pursuing online platforms directly.

Participants discussed eligible accommodations. Staff explained that taxable "accommodations" are rented for 90 days or less; permanent campground pads or owner-owned campers typically are not taxed unless the owner rents a unit short-term, while tiny houses and other enclosed lodging may be taxable when rented short-term.

Several speakers disputed whether the measure would burden residents. One committee member noted the tax is paid by visitors and estimated modest per-room revenue (for example, 6% of a $150 room is $9) but said the town could realize meaningful sums overall. Staff also said the board could petition state authorities if it wanted to change how net proceeds are split or to broaden eligible tourism-related spending, but the board cannot unilaterally rewrite the cited session laws.

A committee member moved to set up the resolution to create the TDA and to expand membership to five (from three). Staff advised that the board may vote during the public hearing and that appointments to the TDA would be made at a later meeting; the transcript does not record a final vote or the outcome. Staff also said applications were available that night and would be posted on the town website and indicated the board hoped to have applications back before April 1 if the TDA is to begin operating then.

Next steps: the resolution language was read into the record and a motion was made; the transcript does not record a formal vote. Staff will confirm legal questions raised during the hearing, including precise treatment of tax-exempt customers and the process for reconciliation of preexisting reservations.